The UK's Competition and Markets Authority (CMA) has proposed changes meant to make it easier and cheaper for companies to build Apple Pay alternatives on the iPhone.
The regulator says Apple's fees and restrictions make it too hard for rivals to launch contactless payment apps. The proposals would widen access to the iPhone's NFC (near-field communication) technology, the short-range radio that lets you pay by holding a phone near a terminal.
Apple opened NFC access to UK developers in 2024, but with conditions. Companies must sign an agreement with Apple and pay fees. They must also use the Secure Element, a dedicated chip that stores sensitive data such as payment credentials. The CMA wants Apple to support host card emulation (HCE) as well, a method that lets payment apps work without the Secure Element. It also proposes rules it expects would substantially lower Apple's access fees, though Apple could still charge something.
The CMA points to the EU as a comparison. Apple offers HCE access there under commitments agreed in 2024, and rival payment apps have since launched. Under Apple's current terms in the UK, no competing wallet-type product has launched.
Apple said developers can already offer contactless services using its technology. "We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections," the company said, adding that it will keep engaging to reach an outcome in its users' interest.
The EU comparison is suggestive rather than conclusive, since two markets and two sets of terms are not a controlled experiment. Still, it is the CMA's strongest evidence that the technical route matters as much as the price. The fee cut looks like the negotiable half of the package. HCE is the part Apple has already objected to, and it is where the dispute will be decided.